Members questioned the efficacy of the R&D Tax Incentive Programme. Though not as effective as the Department would wish it to be, the objective of the Tax Incentive Programme was to ensure that there was an overall increase in the number of private sector companies conducting R&D in South Africa. Some of the reported R&D activities show that the Tax Incentive Programme is supporting private sector projects that are relevant to attaining specific government priorities. The Department concludes that in administering the R&D Tax Incentive Programme, it hopes to influence positively the R&D investment and activities of the private sector, thereby, promoting South Africa as a R&D destination within a comprehensive programme of attracting Foreign Direct Investment.